Event: on January 21, 2022, Wanbangda issued a performance forecast that the net profit attributable to 2021 is expected to be 221 million yuan to 255 million yuan, an increase of 158.93% to 168% over the previous year.
The reasons for this performance change are as follows: 1. As a result of the debt restructuring of the Wulanchabu project, the company calculated impairment losses in 2020, reducing the company's profit by about 443 million yuan in 2021, and there was no such major event in 2021. In the first quarter of 2.2021, the company completed the major asset restructuring of Huizhou Isike. Holding its 61% equity stake, Huizhou Isco was included in the merger scope. Huizhou Isco was in good operating condition in 2021, which improved the company's profit level in 2021.
Comments: comprehensive environmental protection service provider, layout of salt lake lithium extraction industry chain. The company is engaged in comprehensive environmental protection services, and has formed an industrial pattern of materials in the south, solid waste in the north and water in the west. According to the data of the company's semi-annual report in 2021, the revenue from chemical materials / industrial water treatment systems / garbage treatment services accounted for 75.60% 15.09% 7.09% of the total operating income respectively. The company's business blossoms: 1), subsidiary Huizhou Isco develops and sells C5 and C9 petrochemical products; 2) the company provides trusteeship services for large-scale industrial water treatment systems in petrochemical and coal chemical industries, including BOT, RPCO and other operating projects; 3), subsidiaries Jilin solid waste and Heilongjiang Jinghua carry out hazardous solid waste treatment, the main wastes are industrial hazardous waste / medical waste. 4) the company cooperates with Jintai lithium industry to lay out 3000t/a lithium carbonate production line.
There has been a substantial increase in income and a steady improvement in performance. In the first three quarters of 2021, the operating income was 1.363 billion yuan, an increase of 224.38% over the same period last year; the net profit was 221 million yuan, + 136.18%; the non-net profit was 117 million yuan, + 28.09%; and the basic earnings per share was 0.2556 yuan, + 136.23% over the same period last year, with an average gross profit margin of 20.84%. Among them, the operating income / net profit of Q3 in 2021 was 5.75 / 57 million yuan, up 284.32% and 113.77% respectively over the same period last year; and the sales / management / R & D expenses were 2776.36 yuan, 6874.00 and 43.92.01 million yuan respectively, up 282.67% and 37.31% and 321.60% respectively over the same period last year.
Earnings forecast: cover the stock for the first time and give the company a "buy" rating. We forecast that from 2021 to 2023, the operating income of the company will be 1.435 billion yuan / 1.655 billion yuan / 1.825 billion yuan respectively, the net profit of returning to the mother will be 223 million yuan / 248 million yuan / 276 million yuan respectively, and the corresponding PE will be 46.20x/41.56x/37.36x.
Risk hints: epidemic control is not as expected; lithium mine layout process is not as expected; profit forecast and valuation model is not as expected
